VUSION (VU.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:VU - FR0010282822 - Common Stock
138.2 EUR
+5.1 (+3.83%)
Overall VU gets a fundamental rating of 4 out of 10. We evaluated VU against 51 industry peers in the Electronic Equipment, Instruments & Components industry. While VU is still in line with the averages on profitability rating, there are concerns on its financial health. VU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year VU has reported negative net income.
- In the past year VU had a positive cash flow from operations.
- In multiple years VU reported negative net income over the last 5 years.
- VU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of VU (-0.74%) is comparable to the rest of the industry.
- VU has a Return On Equity of -6.16%. This is in the lower half of the industry: VU underperforms 62.75% of its industry peers.
- VU has a Return On Invested Capital of 8.77%. This is in the better half of the industry: VU outperforms 78.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VU is in line with the industry average of 7.60%.
- The 3 year average ROIC (7.45%) for VU is below the current ROIC(8.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.74% | ||
| ROE | -6.16% | ||
| ROIC | 8.77% |
ROA(3y)3.15%
ROA(5y)1.7%
ROE(3y)8.98%
ROE(5y)4.87%
ROIC(3y)7.45%
ROIC(5y)N/A
1.3 Margins
- The Operating Margin of VU (3.37%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of VU has grown nicely.
- VU has a Gross Margin of 28.15%. This is in the lower half of the industry: VU underperforms 78.43% of its industry peers.
- VU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.37% | ||
| PM (TTM) | N/A | ||
| GM | 28.15% |
OM growth 3Y25.55%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.83%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
- VU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- VU has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VU has more shares outstanding
- The debt/assets ratio for VU has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.65, we must say that VU is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.65, VU is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- The Debt to FCF ratio of VU is 0.37, which is an excellent value as it means it would take VU, only 0.37 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of VU (0.37) is better than 94.12% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that VU is somewhat dependend on debt financing.
- VU has a worse Debt to Equity ratio (0.52) than 62.75% of its industry peers.
- Although VU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.11
WACC7.93%
2.3 Liquidity
- A Current Ratio of 0.87 indicates that VU may have some problems paying its short term obligations.
- VU has a worse Current ratio (0.87) than 88.24% of its industry peers.
- A Quick Ratio of 0.75 indicates that VU may have some problems paying its short term obligations.
- VU has a Quick ratio of 0.75. This is in the lower half of the industry: VU underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- VU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.74%, which is quite impressive.
- VU shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.72%.
- Measured over the past years, VU shows a very strong growth in Revenue. The Revenue has been growing by 30.99% on average per year.
EPS 1Y (TTM)63.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%62%
Revenue 1Y (TTM)39.72%
Revenue growth 3Y31.19%
Revenue growth 5Y30.99%
Sales Q2Q%50.18%
3.2 Future
- Based on estimates for the next years, VU will show a very strong growth in Earnings Per Share. The EPS will grow by 51.78% on average per year.
- The Revenue is expected to grow by 21.83% on average over the next years. This is a very strong growth
EPS Next Y101.41%
EPS Next 2Y77.55%
EPS Next 3Y59.84%
EPS Next 5Y51.78%
Revenue Next Year49.85%
Revenue Next 2Y35.68%
Revenue Next 3Y30%
Revenue Next 5Y21.83%
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- VU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 13.75, the valuation of VU can be described as correct.
- Based on the Price/Forward Earnings ratio, VU is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
- VU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.75 |
4.2 Price Multiples
- VU's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, VU is valued cheaper than 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.77 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- VU's earnings are expected to grow with 59.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y77.55%
EPS Next 3Y59.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.45%, VU is not a good candidate for dividend investing.
- In the last 3 months the price of VU has falen by -41.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- VU's Dividend Yield is comparable with the industry average which is at 1.56.
- With a Dividend Yield of 0.45, VU pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The earnings of VU are negative and hence is the payout ratio. VU will probably not be able to sustain this dividend level.
DP-73.71%
EPS Next 2Y77.55%
EPS Next 3Y59.84%
VUSION / VU.PA FAQ
Can you provide the ChartMill fundamental rating for VUSION?
ChartMill assigns a fundamental rating of 4 / 10 to VU.PA.
What is the valuation status for VU stock?
ChartMill assigns a valuation rating of 5 / 10 to VUSION (VU.PA). This can be considered as Fairly Valued.
What is the profitability of VU stock?
VUSION (VU.PA) has a profitability rating of 4 / 10.
How financially healthy is VUSION?
The financial health rating of VUSION (VU.PA) is 3 / 10.
Is the dividend of VUSION sustainable?
The dividend rating of VUSION (VU.PA) is 1 / 10 and the dividend payout ratio is -73.71%.